Credit Card Question

[BlueBird]

Backstory: My credit is not great. I have been dealing with identity theft thanks to a loser I dated a few years ago who also stalked and nearly killed me. It's really been a HUGE mess and with him being out of jail he is still trying to wreak havoc in my life. Everything legitimate on my credit report is from medical bills that I could not pay because I did not have medical insurance for YEARS before I married DH.

DH has decent credit but right now we have a LOT of accounts. We have accepted a payment plan from a couple of the companies understanding that it would take a hit on his credit. We also then closed those accounts. On the program EVERY payment we have made for 6+ months has been paid on time and we are finally making quite a bit of progress.

Today: I went to the mail box and got a credit card in MY NAME ONLY. It's from First Premier Bank. The limit is $250.00 with intial fees of $179.00 and the first payment is $25.00. The terms and all that on the back of the letter indicate that it's for establishing good credit and the limit will increase as you demonstrate the ability to make on time payments.

My Question: Is this worth it? We have been saving and budgeting to get a secured credit card through Wells Fargo with the plan of purchasing our gas and groceries on it each month and paying the charges off every month - no matter what. I'm just wondering if this card would help us do just about the same thing or if it's not gonna work the same way.

Advice appreciated! Our bottom line goal is to get out of debt and rebuild our credit for the future things we will want to do like purchasing a home etc.

[HisCupcake]

i acually went to a financial planning class last nite thru operation homefront, and he said if your trying to get out of debt its not such a good idea to get anymore credit cards or increase limits to existing credit cards.
I guess its depending on the amount of debt and what your gonna use the credit card for.
Good luck!

[*Pamela*]

179.00 in fees sounds reallllly high. Do you not have other credit cards? If so, I would just do the sme thing with those..spend on them, and pay them off everymonth. I don't think this 250.00 card will be any different.

[BlueBird]

We currently only have a USAA MC with a $10k limit and it is just under the limit. We obviously cannot pay that off every month but we do make more than the minimum payment each month. All other cards are closed.

[*Pamela*]

Originally Posted by SrahsCat We currently only have a USAA MC with a $10k limit and it is just under the limit. We obviously cannot pay that off every month but we do make more than the minimum payment each month. All other cards are closed.

I think just paying in that one will do the same thing. Getting another credit card isn't necessarily a BAD thing, it just depends on your debt to income ratio. For sure though, the card you just got doesn't sound like a good idea. (to me anyway)

[mandakins]

To me it sounds like there are too many fees. I would just work on paying down your debt and not worry about another credit card.

[wb3690]

Originally Posted by SrahsCat We currently only have a USAA MC with a $10k limit and it is just under the limit. We obviously cannot pay that off every month but we do make more than the minimum payment each month. All other cards are closed.

I would just continue to pay down this card, charge nothing else and do not open any more credit!!

[LoveMyHalos]

I wouldn't get that card... it's more or less a scam. A regular credit card fee shouldn't really be higher than $89 or so and a really good card shouldn't charge you a fee at all (example, I have like 10 cards and only one, American Express, charges an annual fee). When you get your other stuff paid down, your credit score will go up, and then you'll be able to get a card without any fees at all. It wouldn't surprise me if that card also has a monthly fee even after you pay the annual fee down. I don't think it's worth it.

[ash]

Do not do it. You should not have to pay a fee to have a credit card. Once you re-establish your credit you can get one through your bank wtih NO FEE.

[Victoria]

Originally Posted by SrahsCat Backstory: My credit is not great. I have been dealing with identity theft thanks to a loser I dated a few years ago who also stalked and nearly killed me. It's really been a HUGE mess and with him being out of jail he is still trying to wreak havoc in my life. Everything legitimate on my credit report is from medical bills that I could not pay because I did not have medical insurance for YEARS before I married DH. DH has decent credit but right now we have a LOT of accounts. We have accepted a payment plan from a couple of the companies understanding that it would take a hit on his credit. We also then closed those accounts. On the program EVERY payment we have made for 6+ months has been paid on time and we are finally making quite a bit of progress. Today: I went to the mail box and got a credit card in MY NAME ONLY. It's from First Premier Bank. The limit is $250.00 with intial fees of $179.00 and the first payment is $25.00. The terms and all that on the back of the letter indicate that it's for establishing good credit and the limit will increase as you demonstrate the ability to make on time payments. My Question: Is this worth it? We have been saving and budgeting to get a secured credit card through Wells Fargo with the plan of purchasing our gas and groceries on it each month and paying the charges off every month - no matter what. I'm just wondering if this card would help us do just about the same thing or if it's not gonna work the same way. Advice appreciated! Our bottom line goal is to get out of debt and rebuild our credit for the future things we will want to do like purchasing a home etc.

I would NEVER apply for a card that required payment of initial fees! Instead of paying that $179 to open up that card, which you don't need, you should take that $179 to pay down your debt.